Below is a payroll sheet for Otis Import plc for the month of September 2020. Assume a 10% income tax rate for all employees and an 8% Social Security tax on employee and employer.

Instructions
a. Make the necessary entry to record the payment of the payroll.
b. Make the entry to record the payroll tax expenses of Otis Import.
c. Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

Transcribed Image Text:

Income Earnings to Aug. 31 £ 6,800 Social Тах September Earnings £ 800 Security Withholding Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels 700 6,500 7,600 1,100 13,600 1,900 105,000 13,000 16,000 B. Kingston 112,000